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Posts Tagged ‘Capital Gain’
How to Save $267,892 of Income Tax, Penalties and Interest
A new client came to us late last summer.
She dropped off a notice from the Internal Revenue Service (“IRS”). It indicated her and her husband owed $267,892 of back taxes, penalties and interest. I don’t know about you, but that’s a lot of money to me.
As we reviewed the paperwork she provided, it quickly became apparent she did not declare the sale of … Continue reading »
So if I Catch a "Baseball", I May Owe Taxes to the IRS?
Recently in baseball, a Yankee fan caught Derek Jeter’s 3,000th hit ball and now he may have to pay the Internal Revenue Service (“IRS”) tax money on the few gifts the Yankees gave him. These items included tickets, signed bats, baseballs, and three signed jerseys. The tax bill may be as high as $13,000!
Why Parents Should Not Give Their House to Their Children
Frequently, parents will be encouraged to give their home to their children so the government won’t take it to pay any nursing home bills. This is usually very bad advice. Why is this not an appropriate strategy?
The Difference Between Capital Gains and Ordinary Income
Most long-term capital gains are taxed at 15% for 2010. This rate is scheduled to increase to 20% in 2011. Unfortunately, we need to say “most” because there are some exceptions as follows:
- Taxpayers in the 10% and 15% ordinary bracket―0%
- Certain depreciation recapture on real estate—25%
- Collectibles—28%
